Forexpros – The euro fell against the dollar on Monday as the greenback reversed Friday’s losses amid bottom fishing, brushing off a weak U.S. jobs report that fueled sentiment the Federal Reserve will inject the economy with fresh liquidity to spur more economic growth and hiring.
In Asian trading on Monday, EUR/USD was trading at 1.3077, down 0.15%, up from a session low of 1.3067 and off from a high of 1.3104.
The pair was likely to find support at 1.3052, Friday’s low, and resistance at 1.3233, Wednesday’s high.
On Friday in the U.S., the Bureau of Labor Statistics reported the economy added a net 120,000 nonfarm payrolls in March, well below market expectations for a gain of around 203,000.
The government revised February’s payrolls to 240,000 from 227,000, but cut January’s figure by 9,000 to 275,000.
The numbers rekindled talk the Federal Reserve will consider stimulating the economy by buying bonds from banks, pumping liquidity in the system to keep interest rates low and encourage investment and job creation.
Such sentiments sent the dollar plunging on Friday, although the greenback later regained its strength after the market digested the jobs data over the holiday weekend, with many pointing out the Fed likely won’t change monetary policy over one jobs report.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.14% at 0.8238 and EUR/JPY down 0.40% and trading at 106.47.
On Monday, markets in Switzerland, the eurozone and the U.K. will remain closed due to the Easter holiday, while in the U.S. Federal Reserve Chairman Ben Bernanke is due to appear in public.
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